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Executive Summary/Proposal New Oriental's mission: To enhance the competitiveness of shaping students' lifelong student citizenship gives students

a global vision and work. New Oriental Education School grow from the current group of language training as the core, has a short-term language training systems, vocational education system, basic education system, culture and communication systems, technological and industrial systems, consulting services, systems, development studies systems, and other development platforms, is a collection of education and training, educational product development, education services is one of the major integrated Education school. Language study is growing trend in education industry and New Oriental Education & Technology Group will teach both traditional and unique styles of language classes. This blend of styles draws more customers than typical studios attract. By capitalizing on this strength, we are in unique position to create nationally recognized style of teaching and recognized brand. The primary objective is to open a flagship centre that will draw clients from other local studios. Franchise additional studios under the New Oriental Education & Technology Group brand, will establish our unique system of language training as branded system. The objective to open our first local studio, train teachers in our methodology create branded retail products then expand our unique language training system into recognizable market culture. The second step is to train teachers and staff. The Mission Statement language training is at the core of New Oriental's business. While English is by far the most popular language we teach, we also provide courses in German, Japanese, French, Korean, Italian and Spanish. Our language students come from a wide range of educational backgrounds and have differing goals, motivations and abilities, but they all share a common purpose: achieving a brighter future through mastery of a foreign language. Reflecting this diversity, New Oriental's English language offering is divided by age group and student's particular language study needs. Classes are offered morning afternoon and evening seven days week to accommodate all of our clients' schedules. The Centre will be open daily from 8 a.m. to 8 p.m. foreign language classes and private classes will be offered as contracted services and scheduled by appointment. One full time employee will be the business manager and responsible for the day to day operations, accounting sales marketing and future business development. Experienced students tend to try new studios teachers and styles of teaching. Advertising new style of language in new studio will draw many students from competing studios; advertising the essential of language practice in general will draw first time language training students looking for new training

regime. Many language training studios are small teacher owned operations with basic services and little or no amenities; often they also lack the equipment required. Full service studio complete with amenities and equipment that teaches variety of language training in addition to our most popular unique style will easily draw clients away from other local studios. The schedule for opening of New Oriental School is estimated at 4 months, with a projected start date of 10/04/2013 and with an estimated end date of 02/04/2014. Opening New oriental school requires loan to open our first centre. Funding is to be used to cover expenses of opening our first studio location. An initial loan amount of $100,000.00 will be needed to open first centre location. The list of expenditures includes: accounting and legal services, advertising/promotion, association dues, banking fees, brochures (design, printing and postage), cleaning supplies, credit card fees, printing (business cards, stationary, etc.), Internet/Web site design and maintenance, liability insurance, loan interest, maintenance and repairs, office supplies, postage, purchases for retail sales, rent, teacher salaries, telephone, travel, utilities and workshops. In addition, there will be start-up costs, which will include furniture and equipment, purchase of props, decorating, remodeling, signage and security deposit on rent. Revenue generation will be primarily through class fees that will be collected by offering Language training classes. Initial charge between $11 and $15 for people dropping into single classes, and a wide variety of packages for students wanting package deals, charges will be between $15 for a single class, $150 for an unlimited month of classes, and $750 for six months of unlimited classes.

Cost Estimates The cost estimates for opening a viable and profitable Language training Center is given below 1. Monthly costs: $10,000 includes $3,000 monthly salary for the Business Manager. 2. Average per visit revenue: $11 per visit. 3. Average visits per week per client: 1 visit per day Using these figures, each client will spend $44 per month in the center. $12,000 / $44 = 273 clients per month. Another figure is the number of visits per month needed: $12,000/$11 = 1,090 (= 273 visits per week). Basically, we will need 273 clients who on average, attend 4 times per month. These calculations can be done before we actually lease the space. The calculation is done to determining how many classes we can teach to reach the example figure of 1,090 visits per month, if we lease approximately 20 square feet of school space per visit. This means if we have a 500 square foot

language training center room space (where we actually teach not including office and retail space), we can accommodate 24 students. If we have a 1,000 square foot room space, we can accommodate 49 students. Chances are morning and Saturday classes will be the best-attended unless we teach a particular niche that attends at other times. We will have to experiment with class schedules for several months. If we are open for a few months, we could be tracking when people attend. If you have our space leased, we can easily calculate how many students the space can accommodate at one time. This means we know the very minimum number of classes we must schedule each week (minimum number of weekly visits / number of students that fit in our space). If it is a 500 square foot - 273 visits per week / 24 spaces = 12 classes each week. Fixed Start up Costs Mortgage or Lease Deposit $10000 Inventory $5000 Insurance $2000 Store Fixtures, Signs & Equipment $28000 Office Supplies & Store Use Items $15000 Professional Fees (Legal &Accounting) $5000 Licenses, Permits & Registration Costs $15000 Utilities Deposits/Connection $5000 Other Fixed Start-up Costs (Website, Etc.) $4000

Monthly Operating Expenses Rent/Mortgage Payment $2300 Inventory $ 500 Loans $500 Wages $5000 Advertising/Marketing $1500 Insurance $200

Equipment Lease $1000 Utilities $ 500 Other Expenses (Web Hosting, Etc) $500

Total Start-up Cost (Funding Requested for Start-up) = $ 100,000 Total Estimated Monthly Expenses = $ 12,000

Advanced Cost Estimating Technique Range (or three-point) estimates use the beta distribution formula to refine estimating accuracy when specific data for quantity and price are not available. This technique is applicable where historical data indicates that material prices/quantities may fluctuate over time and predictions regarding the price/quantity at the time of project execution are unavailable at the time the estimate is formed. Ranges are developed using low (optimistic), most likely and high (pessimistic) estimates for variables within the estimate. These numbers are then refined using the beta distribution formula. This equation is meant to provide a "weighting" to the Popt, Pmost, and Ppess to create a beta distribution of possible outcomes for Pexp. The resulting distribution will be biased to the side which is larger, Popt or Ppess (typically toward the Ppess side). When we apply the weighting of 1, 4, and 1 to Popt, Pmost, and Ppess and then add the six "parts" together we get a number that is approximately six times greater then what our estimate should be. As a result, we divide by six to remove the weighting and return the estimate to the original magnitude. Three-point Estimation 1) Calculate the rate to be charged per student per class Popt = $11 per class Pmost = $15 per class Ppess = $16 per class Pexp = (Popt + (4 x Pmost) + Ppess) / 6 Pexp = ($11+ (4 * $15) + $16) / 6 = $14.50 per class Project Expected Class Cost = $14.50 per class

2) Calculate average visits per day by students Using $11 as an average cost per class, each client will spend $44 per month in the center, if it is 1 visit per day $12,000 / $44 =273 clients per month. Another figure is the number of visits per month needed: $12,000/$11 = 1,090 (= 273 visits per week). Basically, we will need 273 clients who on average, attend 4 times per month. Expected Amount Popt = 1 visit per day = (1 * $14.5) = $14.5 per day Pmost = 2 visits per day = (2 * $14.5) = $ 29 per day Ppess = 3 visits per day = (3 * $14.5) = $ 43.5 per day Pexp = (Popt + (4 x Pmost) + Ppess) / 6 Pexp = ($14.5 + (4 * $29) + 43.5) / 6 = $29 per day/per client

3) Expected Cost (Simple Method) = $14.5 * $29 / 31 days = $13.56 per day/per client 4) Most Optimistic Cost = ($15 * 2) = $30 Most Pessimistic Cost = ($16 * 3) = $48 Pexp = (Pmost+ (4 x Popt) + $Ppess) / 6 Expected Cost (complex Method) = ($30+ (4 * $11) + $48) / 6 = $ 20.30

Cost Assumptions Language training classes initial charge between $11 and $15 for people dropping into single classes, and a wide variety of packages for students wanting package deals, charges will be between $15 for a single class, $150 for an unlimited month of classes, and $750 for six months of unlimited classes. Monthly costs: $12,000 Average per visit revenue: $11 per visit. Average visits per week per client: 1 visit per day Using these figures, each client will spend $44 per month in the center. $12,000/$44 = 273 clients per month. Another figure is the number of visits per month needed: $12,000/$11 = 1,090 (= 273 visits per week). Basically, we will need 273 clients who on average, attend 4 times per month. These calculations

can be done before we actually lease the space. The calculation is done to determining how many classes we can teach to reach the example figure of 1,090 visits per month, if we lease approximately 20 square feet of studio space per visit. This means if we have a 500 square foot training center room space (where we actually teach not including office and retail space), we can accommodate 24 students. If we have a 1,000 square foot room space, we can accommodate 49 students. Chances are morning and Saturday classes will be the best-attended unless we teach a particular niche that attends at other times. We will have to experiment with class schedules for several months. If we are open for a few months, we could be tracking when people attend.

Schedule

Once a WBS has been constructed, then we can sequence the activities (work packages). A graphic depiction of the activities can facilitate team participation in the placing of the activities in the proper sequence. It can show the logical relationship between the various work packages. Work packages can be represented by boxes. Dependencies, what must be done before another activity can be started, are represented by arrows linking various activities. It is possible to have multiple arrows going to a box. It is possible that multiple paths may develop before coming to the end of the project. Once durations have been estimated for the various activities, it is possible to determine how long the project will take to complete. The path that takes the longest period of time to complete is called the critical path. The schedule for opening of New oriental school is estimated at 4 months, with a projected start date of 10/04/2013 and with an estimated end date of 02/04/2014. MSP project document is attached as a separate document which calculates the schedule of this project. Please see the Gantt Chart and Network Diagram Attached.